Movado Group Inc.

Good day, everyone, and welcome to the Movado Group, Inc. Fourth Quarter 2026 Earnings Conference Call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company. At this time, I would like to turn the conference over to Allison Malkin of ICR. Please go ahead.

Thank you. Good morning, everyone. With me on the call today are Ephraim Grinberg, Chairman and Chief Executive Officer of and Sally DeMarsalis, Executive Vice President and Chief Financial Officer. Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in such statements, due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. If any non-GAAP financial measure is used on this call, a presentation of the most directly comparable GAAP financial measure through this non-GAAP financial measure will be provided as supplemental financial information in our press release. Now, I would like to turn the call over to Ephraim Grunberg, Chairman and Chief Executive Officer of Movado Group.

Thank you, Alison. Good morning, everyone, and welcome to Movado Group's fourth quarter and full year conference call. Joining me today is Sally DeMarcelis, our Executive Vice President and CFO. After our prepared remarks, we will be glad to take your questions. After a challenging fiscal 2025, we were pleased to return to growth in fiscal 2026. Revenue increased 2.7% to $671.3 million, and adjusted operating income grew 28.7% to $34.8 million, reflecting strong execution across our strategic priorities. These results exceeded our expectations and improved as the year progressed. with fourth quarter sales of 5.6% to $191.6 million, led by our U.S. wholesale and retail business. Adjusted operating income grew by 6.2% for the quarter to $14.4 million. We also generated strong operating cash flow of $57.9 million, and ended the year with $230 million in cash and no debt, which gives us significant flexibility as we move forward. These results were helped by a strong euro, offset somewhat by the impacts of a very strong Swiss franc. During the year, we advanced our strategic priorities, which focused on four key areas. Let me discuss highlights of each. First, putting the customer at the center of everything we do. This focus continues to guide how we operate across all channels. Digitally, we strengthened our engagement with consumers, and we're seeing the benefits from a more connected, omnichannel approach. From a category standpoint, we saw continued strength in both the fashion watch and accessible luxury segments in the U.S., Importantly, we are seeing increased participation from younger consumers along with a strong return of women into the category, driven by smaller case sizes and jewelry-inspired designs and fresh styling. In our company stores, we delivered a strong holiday season with sales up 9% for the fourth quarter, driven by higher average selling prices, improved merchandising, and better in-store execution. Our teams have done an excellent job elevating the consumer experience at the point of sale. Second, delivering consumer and brand-focused innovation. Innovation was a major driver of our momentum, particularly in the fourth quarter. Across our portfolio, traditional watches are resonating strongly, especially with younger consumers who are responding to new shapes, sizes, and design expressions. Within the Movado brand, we had an excellent quarter. Wholesale sales grew over 25%, and our e-commerce business increased 18%, reflecting the success of our brand refresh initiatives we began implementing about 18 months ago. From a product standpoint, we had a number of exciting highlights, including continued strength in our mini bangle collection, which is performing very well with women across multiple shapes. Strong demand to our Movado 1917 Heritage Collection, which is resonating with both men and women. Ongoing growth in higher price point automatic watches, led by the Museum Classic Automatic. And encouraging traction in jewelry, particularly with our Ono Collection. Looking ahead, we're excited about the pipeline of innovation we will bring to consumers. We'll be introducing Veloura, a beautiful new women's museum watch, expanding our Movado Bold offering with Verso S, and launching a new heritage model inspired by the original Movado Kingmatic. We're also expanding our jewelry collections, including our new Curve line for women. Our licensed brands also delivered strong innovation and growth. Coach performed very well, driven by Gen Z engagement and the continued success of the Sammy family, along with Caddy and Reese. We're clearly capturing the momentum of the parent brand with Gen Z consumers. Hugo Boss saw strong momentum with Grand Prix and growth in women's with the May collection. Lacoste continued to perform, led by the LC-33, and strengthened men's jewelry, particularly the Metropole bracelet. In Tommy Hilfiger, we're seeing a strong response to new shapes, smaller case sizes, and trend-right design. In Tommy Hilfiger men's, we've also seen success with Oxford, inspired by the traditional Oxford shirt. In Calvin Klein, we saw a strong reaction to our innovation in watches with the introduction of our new Pulse Mini, our unique circle in the square watch design. We also received a favorable response to our CK motion for him and believe that men's represents a significant opportunity going forward. Finally, Olivia Burton continued its growth in both the UK and the US, driven by Minnie Grove and Grosvenor, supported by our Minnie to the Max campaign. Overall, we're very encouraged by the return of consumers to the fashion watch category, particularly women, and we believe we are well positioned to capitalize on that trend. This brings us to our third strategic priority. connecting with consumers through compelling storytelling across digital and communication platforms. This is an area where we've made meaningful progress. During the holiday season, our Movado campaigns featuring brand ambassadors including Ludacris, Christian McCaffrey, Julianne Moore, Jessica Alba, and Tyrese Halliburton performed very well. What made it effective was the authenticity of the storytelling, with each ambassador sharing how they personally connect with our brand. We amplified this across digital channels, social platforms, and through influencers and content creators, allowing us to reach consumers in more relevant and engaging ways. Looking ahead, storytelling will be even more important as we celebrate Movado's 145th anniversary. we're developing a series of campaigns that highlight our Swiss heritage, craftsmanship, and the growing interest in our vintage timepieces, which we believe will further strengthen our emotional connection with consumers. As a company, we will also be amplifying our investments by expanding our consumer insights capabilities, further reinforcing the importance of placing the consumer at the center of each of our brands' universe. And finally, driving profitability and strengthening our gross margins. This remains a key focus for us. Despite external pressures, including tariffs, we are able to maintain stable gross margins while significantly increasing operating income. This reflects the disciplined execution of our teams across pricing, sourcing, product mix, and cost management. As we move forward, our initiatives are clearly focused on improving profitability. This includes continuing to shift our mix towards higher margin products, driving more full-price sell-through through stronger brand positioning while reducing promotional activity, and improving efficiency across our supply chain and operations. We see a clear path to margin expansion over time as we continue to execute against these priorities. So overall, we are very pleased with the momentum in the business, as well as the strong execution and collaboration our teams have demonstrated in advancing our strategic initiatives. These investments we've made over the past several years are delivering results, and we believe we are well positioned for continued growth. At the same time, we remain mindful of the broader environment. The conflict in the Middle East has introduced additional uncertainty in global markets. We are closely monitoring the situation while supporting our teams and partners in that region. With that, I'll turn the call over to Sally to review our financial results in more detail, and then we'll be happy to take your questions.